Consistent remand to the First Appellate Authority ensured uniform reconsideration of the same exemption dispute

Where connected assessment-year disputes on the same exemption issue had already been remanded to the First Appellate Authority, the Court applied the same course to avoid inconsistent remand directions across proceedings for the same assessee. It set aside the orders below and directed fresh disposal of the appeal by the First Appellate Authority rather than the Assessing Authority. The Court further noted that any material gathered before the Assessing Authority after the interim order could be considered by the First Appellate Authority while re-examining the appeal.

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Issues: Whether the matter, which had been remanded by the authorities below to the Assessing Authority, ought instead to be remanded to the First Appellate Authority for fresh consideration.

Analysis: The revisionist's earlier revisions for other assessment years involving the same exemption dispute had already been dealt with by remanding the matter to the First Appellate Authority. The Court found that the present case stood on the same footing and that a similar course should be adopted to avoid an incongruous situation where one set of proceedings was remitted to the Assessing Authority while connected proceedings for the same assessee were remitted to the First Appellate Authority. The Court also noted that any material collected in proceedings before the Assessing Authority after the interim order could be taken into account by the First Appellate Authority while deciding the appeal afresh.

Conclusion: The orders of the Tribunal and the First Appellate Authority were set aside and the matter was remanded to the First Appellate Authority for fresh disposal of the appeal.

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